Governor Signs Skinner’s Bill on PACE Clean Energy Financing: Landmark Consumer Protections Enacted
Sacramento, State Capitol – Governor Jerry Brown signed Senate Bill 242 authored by State Senator Nancy Skinner (D-Berkeley) to strengthen consumer protections for California’s Property Assessed Clean Energy (PACE) financing program.
Since being launched in Berkeley in 2007, PACE has assisted California homeowners finance clean energy, energy efficiency, water conservation and earthquake safety upgrades to their homes. SB 242 adds important consumer protections to ensure that owners are fully aware of loan terms and that loan payments are made through their property tax bills, provides a 3-day right to cancel and makes it illegal for marketing incentives to be paid to contractors.
“California is the national leader in PACE financing,” stated Senator Skinner, “SB 242 strengthens PACE so homeowners can rely on it as a convenient tool to finance energy, water and earthquake safety upgrades.”
PACE programs are administered by local governments who finance the program through a local government bond; loans to property owners are paid back via a line item on the owner’s property tax bill. PACE now operates in more than 44 cities and counties across California, as well as in 34 other states.
“With these added safeguards, California’s PACE program will be better than ever, doing good for both homeowners and our environment,” State Senator Nancy Skinner.
The Governor also signed a companion bill Assembly Bill 1284 giving the Department of Business Oversight the responsibility to oversee California’s PACE program. Both bills will go into effect on January 1, 2018.